On September 27, the City Council Transportation Committee discussed a series of proposals to protect the rights of drivers. An organization claiming to represent Uber drivers’ interests, the Independent Drivers Guild (IDG), held a rally in front of City Hall protesting against proposal Intro. 276, which aims to protect drivers from deactivation and lockout restrictions imposed by high-tech companies like Uber and Lyft. Meanwhile, another union, the New York Taxi Workers Alliance representing 80,000 taxi drivers, supported the proposal, urging for its immediate adoption as a landmark initiative.
Over the past decade, there has been a significant transformation in New York City’s For-Hire Vehicles (FHV) industry, with an increasing number of drivers joining the sector. According to City Council data, the number of FHV licenses skyrocketed from 40,000 in 2011 to 130,000 in 2018, prompting the city government to halt the issuance of new licenses with subsequent local legislation. However, in 2022, restrictions on electric vehicle licenses were eased, leading to the issuance of 1,000 new licenses. By October 2023, all restrictions on electric vehicles were lifted, resulting in a surge of electric FHV on the roads.
Saturated market conditions, coupled with the implementation of a minimum wage requirement for drivers in 2019, led companies like Uber and Lyft to utilize technological mechanisms to deactivate drivers’ apps, essentially forcing them to stop working. This unilateral action by the tech companies caused drivers to complain of a 50% reduction in income.
In response, the city government intervened and reached an agreement with Uber and Lyft on July 31 this year, with the companies agreeing to minimize restrictions on driver app usage. However, a report by the City Council revealed that following Labor Day in September, drivers continued to experience deactivations and lockouts.
At this juncture, City Council members Shekar Krishnan and Linda Lee introduced Intro. 276 legislation to protect FHV drivers from restrictions imposed by Uber and Lyft. The New York Taxi Workers Alliance supported the bill, stating that it prohibits unjustifiable deactivations and requires a two-week advance notice of deactivations. Moreover, the bill grants drivers the right to utilize an independent, city-managed process for grievances and arbitration, ensuring compensation for drivers if found that Uber acted unfairly.
“The Proposal No. 276 provides the strongest protection for private labor of Uber and Lyft drivers in New York City,” the union stated on X platform, “hence Uber and Lyft are attempting to eliminate this proposal.”
On the other hand, the Independent Drivers Guild, protesting in front of City Hall on Friday, argued that this proposal circumvents the union’s negotiation system.
“Through our union negotiation system, drivers have access to well-trained defense lawyers, fair arbitration, and a swift return-to-work pathway,” stated a statement received by this newspaper from IDG. “This bill will undermine all that we have fought for, replacing a strong driver-led process with a weaker bureaucratic system managed by city agencies, leaving drivers to fend for themselves.”
In response, the Taxi Workers Alliance accused IDG of being a “front organization for Uber” disguised as a union, suggesting that drivers entering arbitration through IDG are entering a process controlled by Uber, making Uber the judge, jury, and prosecutor.
This newspaper interviewed a Chinese Uber driver, Mr. Zhao, who shared an incident where a colleague was unfairly deactivated by Uber and sought help from IDG.
“We’ve been trying to get help from IDG for a long time with no results,” said Mr. Zhao. “But when he turned to the New York Taxi Workers Alliance, they immediately took action, which is why we believe IDG’s effectiveness is limited.”
Mr. Zhao revealed that after September, Uber stopped deactivating drivers, while Lyft continued to do so. “We’ll have to wait until October to see how these two companies perform.”
At the public hearing in the City Council on Friday, some drivers directly demanded the city to “suspend” Uber and Lyft, revoking their operating licenses in New York City. Drivers emphasized, “We are not Uber’s drivers, we are not Lyft’s drivers, we are not slaves, we are people, we are New York’s taxi drivers!”